The Reserve Bank of India (RBI) has announced the final redemption details for the Sovereign Gold Bond (SGB) 2017-18 Series-VIII, issued on November 20, 2017. As specified in the original notification (F.No.4(25)-(W&M)/2017 dated October 6, 2017), this tranche completes its eight-year maturity on November 20, 2025.
The Reserve Bank of India (RBI) has fixed the final redemption price at Rs 12,300 per unit, calculated on the basis of the simple average of 999-purity gold prices published by the India Bullion and Jewellers Association (IBJA) for the three business days preceding the redemption date — November 17, 18 and 19, 2025.
Investors who subscribed at the issue price of Rs 2,951 per gram (the original issue price for this tranche), will receive the maturity amount directly into their linked bank accounts.
How SGB redemption price is calculated
RBI has also fixed the redemption price for this tranche at Rs 12,330 per unit. The price has been calculated based on the simple average closing price of 999-purity gold for the three business days preceding the redemption date—November 17,, 18, and 19, 2025—as published by the India Bullion and Jewellers Association (IBJA).
Investors Earn Rs 9,349 gain per unit
Investors who bought the SGB 2017-18 Series-VIII at the issue price of Rs 2,951 per gram will redeem their holdings at Rs 12,300 per unit, giving them an absolute gain of Rs 9,349 per unit over eight years. This works out to a total return of 317% for the full tenure. On an annualised basis, the investment delivers an estimated 19.7% CAGR, even before including the 2.5% annual interest that SGBs pay. With interest income added, the effective overall return becomes even higher, making this tranche one of the most rewarding SGB investments for long-term holders.
What is the Sovereign Gold Bonds scheme?
SGB Scheme was introduced by the Indian government in November, 2025 as an alternative to attract gold ownership. The bonds were issued by the RBI for and on behalf of the Centre. The bonds denominated in grams of gold offered investors dual benefit-- earning a fixed annual interest of 2.5% on the issue price and earning capital appreciation linked to gold prices. The scheme majorly aimed to reduce India’s reliability on imported physical gold, curb hoarding, and channel household savings into financial assets.
The bonds have a fixed term of eight years, but investors can exit after five years on interest payment dates if they wish. SGBs can also be traded on stock exchanges, transferred to others, or used as collateral for loans.
How Do Sovereign Gold Bonds Work?
If you want to invest in Sovereign Gold Bonds, all you need is to purchase Sovereign Gold Bond from either a bank, SHCIL or designated post offices. For offline purchases, an SGB certificate from the holding of the issuing bank or designated post offices is issued. You can collect it. In case you have purchased an SGB online, your demat account portfolio will reflect. The SGBs offer an interest of 2.5% per annum.
What is the tax treatment of Sovereign Gold Bonds
As per the provisions of the Income-tax Act, 1961 (Section 43 of 1961) the interest on the SGBs is taxable. When an individual redeems these bonds, they are free from paying capital gains tax. Any capital gains that result from the transfer of the bonds on the exchange will be eligible for the indexation benefits.
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